LeftLaneNews

GM sales continue to slide in China

The company blames the lackluster performance on model changeovers and phasing out of older models.

General Motors has reported another monthly sales decline in the world's largest automotive market.

The American automaker and its Chinese joint-venture partners sold approximately 252,500 vehicles in May, representing a decline of approximately 4.0 percent compared to the same period last year.

The company suggests the slide can be blamed on model changeovers for several models and phasing out of older vehicles. A price-slashing campaign, which reduced the sticker prices on 40 models by up to $8,680 USD, was either too little or too late to bring the month into the black.

Buick -- GM's best-selling brand in China -- recorded a sharp decrease of 12.9 percent in May, though sales of the Envision, Enclave and Encore SUVs were up by nearly 158 percent.

Cadillac continues to be a shining star, bringing the only positive growth among GM brands in China for the second month in a row. Shipments were up by nearly 11 percent, with ATS and ATS-L deliveries achieving a five-fold jump.

"China's vehicle market continues to grow at a moderate pace," said GM China president Matt Tsien. "We expect about 6-8 percent annual growth, which is significant given the size of the world's largest passenger vehicle market."

Despite the rough spring, GM has managed to achieve a 5.1 percent increase for the first five months of the year overall.

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